Japanese Buyers Snap Up Australian Bonds

Japanese investors are heading back into Australia to snap up the country's high-yielding bonds, the latest shift by some of the world's biggest money managers looking to juice up returns.

Funds in Japan scooped up a net 3.6 billion Australian dollars (US$3.2 billion) of bonds in the three months to December, a reversal from almost uninterrupted selling for a year, according to data from Morgan Stanley and the Ministry of Finance in Tokyo.